0238 Assist Sports LLC Vs. Saski Baskonia S.A.D. (Public Version)
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ARBITRAL AWARD (BAT 0238/11) by the BASKETBALL ARBITRAL TRIBUNAL (BAT) Mr. Ulrich Haas in the arbitration proceedings between Assist Sports LLC , P.O. Box 458, 10514, Chappaqua, New York, USA - Claimant - represented by Mr. Juan de Dios Crespo Pérez, Ruiz-Huerta & Crespo SL Avda. Reino de Valencia 19, 4 a, 46005 Valencia, Spain vs. SASKI BASKONIA S.A.D., Fernando Buesa Arena, Ctra. Zurbano S/N, Torre 12, 01013 Vitoria, Spain - Respondent - represented by its Chairman, Mr. José Antonio Querejeta Altuna and by Mr. Juan José Seoane Osa, lawyer 1. The Parties 1.1 The Claimant 1. Assist Sports LLC (hereinafter referred to as “Claimant”) is a company with its business address in New York, USA. It is represented – inter alia – by Mr. Eric Fleisher, a FIBA- licensed agent with licence no. 2010022689. 1.2 The Respondent 2. Saski Baskonia SAD (hereinafter referred to as “Club” or “Respondent”) is a professional basketball club located in Vitoria, Spain. The Club is represented by its chairman, Mr. José Antonio Querejeta Altuna and by its lawyer Mr. Juan José Seoane Osa. 2. The Arbitrator 3. On 29 December 2011, the President of the Basketball Arbitral Tribunal (the "BAT") Prof. Richard H. McLaren appointed Prof. Dr. Ulrich Haas as arbitrator (the “Arbitrator”) pursuant to Article 8.1 of the Rules of the Basketball Arbitral Tribunal (the "BAT Rules"). Neither of the Parties has raised any objections to the appointment of the Arbitrator or to his declaration of independence. Arbitral Award 2/20 (BAT 0238/11) 3. Facts and Proceedings 3.1 Summary of the Dispute 4. On 13 April 2010, the Parties and Mr David Logan (hereinafter referred to as “the Player”) signed a “Standard Player’s Contract” (hereinafter also referred to as “the Contract”), according to which Respondent engaged the Player as a professional basketball player for three seasons, namely 2010/2011, 2011/2012 and 2012/2013. 5. Article 10 of the Contract provides as follows: “Agent’s Fee: Club promises to pay the Agent fee to his agent above the net amount, free of taxes, of 232.500 E (two hundred thirty two thousand five hundred Euros), to be paid by the Club to Assist Sports, LLC. as follows: 2010-11 season: 70.000 E (seventy thousand E) on November 15, 2010; 2011-12 season: 77.500 E (seventy seven thousand five hundred E) on November 15, 2011; 2011-12 season: 85.000 E (eighty five thousand E) on November 15, 2012. All Agent fees paid to Agent shall be in net amounts, that is, free and clear of any local, national or any other taxes levied in Spain. Club will provide to Agent, at the same time the fee is paid, an Official certificate indicating that all applicable Spanish taxes, national and local, on the Salary and the Agency Fee were paid by Club on behalf of the Player and Agent. Club agrees to pay Agent a penalty of 100 E per day for each day Club is late after ten (10) days of required payment date pursuant to the schedule set forth above. The Club accepts that in the case any payments inclusive of Agency Fees described in this Contract will be delayed for more than thirty (30) days the Player or his Agent may present written notice to the President of Club by fax or mail at the Club’s address and/or to the Federation and to the League. Upon presentation of this notice Club here-in grants Player his release and makes him an UN-restricted free-agent world wide in addition all monies under this agreement are due and payable by way of acceleration as agreed in this agreement, upon this 30 th day of non-performance. And the 100 E (One Hundred E) per day penalty as described here in shall continue to accrue daily, as a penalty. In addition all other benefits granted to Player as described in Paragraph 3 shall remain in the Player’s possession until Club meets and pays its debt or the controversy is settled in court or by arbitration. Examples are but not limited to Apartment and Automobile. Player shall not be denied his FIBA Transfer as agreed in this agreement under circumstances triggering acceleration. Club further agrees to pay Assist Sports, LLC. an Agent’s fee of ten percent (10%) of Player’s salary from any future renewal, modification or extension with Player within ten (10) days of signing. Club shall be obligated to pay a penalty of 100 E per day which shall continue to accrue Arbitral Award 3/20 (BAT 0238/11) daily until such time that the fee has been received in full, in addition to any expenses Assist Sports, LLC. may incur in the collection of said fees from Club." 6. On 11 November 2011, Mr Eric Fleisher on behalf of the Claimant sent an invoice for the first of the scheduled payments foreseen in Art. 10 of the Contract in the amount of EUR 70,000. The payment was effectuated by the Club. 7. On 3 August 2011 the Player wrote a letter to Mr Eric Fleisher which reads as follows: “Dear Mr Fleisher I am writing this letter to inform you that I no longer wish to have you represent me as my agent. I will no longer need your services in anything regarding myself and any basketball contractions or negotiations. This will begin effective immediately. I appreciate your understanding.” 8. On 24 August 2011, the Club and the Player – without the knowledge and/or intervention of the Claimant or Mr Eric Fleisher – agreed to terminate the Contract with immediate effect (hereinafter referred to as “Termination Agreement”). The Termination Agreement reads - inter alia - as follows: “Release from contractual obligations between: Caja Laboral Vitoria (“Club”) and between: David Logan (“Player”) …. C. Terms of Release 1. This agreement shall serve as a complete and unconditional release of Player by Club regarding any and all agreements in which Player and Club are both parties in interest. 2. Neither the Player nor the Club shall have any duty or obligation to one another under any agreement previously entered into in which the Player and Club are both parties. 3. Any previous existing duties or obligations owed by the Player to the Club and vice-versa are hereby terminated, null and void. Similarly, any obligations of the Club to Player’s agent, and vice-versa, regarding the playing contract between Club and Player are hereby terminated, null and void. Arbitral Award 4/20 (BAT 0238/11) 4. Player shall not be required to perform in any basketball related duties (including media, public relations, etc) on behalf of Club. 5. Club shall not be required to pay to Player any amount of salary, bonus, or other compensation stipulated in any existing contract, including but not limited to the 2011/ or 2012/13 playing contract. 7. In exchange for the amount provided by Player to Club, specified above in C.6, Club shall grant to Player his FIBA Letter of Clearance within twenty- four (24) hours of the Player’s request for such letter. 8. This Agreement shall take full and complete effect upon the payment by Player to Club fully described in C.6 above. 9. The club Saski Baskonia SAD with this agreement has no type of responsibility neither with the player nor with his agents. With this agreement the club does not have and is exempt from responsibilities and obligations with the player, previous agents and current agents.” 9. No more payments related to the Agent fee as foreseen in Art. 10 of the Contract were effectuated by the Club. 3.2 The Proceedings before the BAT 10. On 9 December 2011, Claimant’s counsel filed a Request for Arbitration (with several exhibits) on behalf of Claimant and in accordance with the BAT Rules. The non- reimbursable fee of EUR 3,000 was received in the BAT bank account on 5 December 2011. 11. On 11 January 2012, the BAT informed the Parties that Prof. Dr. Ulrich Haas had been appointed as Arbitrator in this matter; invited the Respondent to file its answer in accordance with Article 11.2 of the BAT Rules no later than by 2 February 2012 (the “Answer”); and fixed the amount of the Advance on Costs to be paid by the Parties no later than by 26 January 2012 as follows: “Claimant (Sport Assist LLC) EUR 4,500 Respondent (Saskia Baskonia) EUR 4,500” Arbitral Award 5/20 (BAT 0238/11) 12. On 1 February 2012, the BAT Secretariat confirmed receipt of Respondent’s share of the Advance on Costs (in the amount of EUR 4,480). Furthermore, it informed Claimant that its payment in the amount of EUR 3,500 was received but that its share of the Advance of Costs was EUR 4,500. It, therefore, requested the Claimant to effect payment of the outstanding amount by no later than 8 February 2012. 13. On 6 February 2012, the BAT Secretariat acknowledged receipt of the full amount of the Advance on Costs. Furthermore, the Arbitrator granted both parties a further round of submissions. 14. Within the (extended) deadline granted by the Arbitrator the Claimant filed its further submissions (including a statement of the legal costs incurred). With letter dated 26 March 2012 the Respondent was granted a deadline of 2 April to respond to Claimant’s additional submissions. 15. By letter dated 30 March 2012, Respondent filed its Rejoinder which – contrary to the original Procedural Order – did not contain an account of costs incurred. With letter dated 12 April 2012 Respondent was granted a deadline of 16 April to comment on Claimant's costs.